About wage code: 321 - Overtime periodic
This new code is fully integrated with the logic "Average will be included in annual income", just like wage codes 81 and 121.
Our Guyana PAYE calculations in Celery are based on a converted annual wage. By applying this code, an average of amounts processed in the past on the wage code 321 is included for future periods in the conversion to the taxable annual wage. This results in a stable and more realistic calculation of the annual wage and the periodic PAYE due.
If these averages were not included in the conversion to the annual wage, the annual wage would increase after each payment and the PAYE due would therefore increase further each period (and even retroactively).
In short, by using this wage code 321, the PAYE on an annual basis is neatly and equally calculated and deducted over the periods and will not increase each period with the highest PAYE deduction especially in December (because employees do not want that in that month of the year).
The wage code mentioned can be duplicated in order to be able to give them your own names, but still be able to use the same calculation method. In particular, you will have to duplicate code 321 several times yourself for all percentages of overtime that you wish to pay out (150%, 175%, 200% etc.).
By adding and applying this wage code, your periodic PAYE calculation will show a better and equal distribution over the year.